Yesterday’s signals were not triggered, as neither of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time, over the next 24-hour period.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.3047.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade
Short entry after the next strongly bearish price action rejection following the next touch of 1.3274.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
USD/CAD Analysis
I wrote yesterday that the price was going to move aimlessly but instead it moved down slowly. The price is still a long way from any support or resistance, but the action does look bearish, so I would take a bearish bias today. However, as this pair is heavily reliant upon the U.S. trading session and the U.S. is on holiday today, there probably will not be much movement, and you are likely to be better off trading other currency pairs involving European currencies.
There is nothing important due today concerning either the CAD or the USD. It is a public holiday in the United States.